🍟 2/24/2022 – Home Renovations Stay Strong
One Twitter Thread:
Mitchell Baldridge: SMB Ownership & Taxes
This thread is a wealth of knowledge on the tax advantages of owning any side hustle or small business.
My favorite is that you can deduct so many expenses if you’re an owner, that you’d incur anyway as a W2 employee (home office, utilities, travel, phone bills, etc.).
Sweaty Startup: How to Hire The Right People
Nick Huber aka The Sweaty Startup guru has a ton of great info on his website. This podcast offers great strategy on how to hire and retain talent for a service oriented business.
- Raise prices before you hire so you put you and your employees in a position to succeed.
- Don’t rely purely on incredible talent, create an environment where average talent can thrive
- The best employees usually have jobs already, go out and find them
Five Star Bath Solutions
- Founded in 1996, franchising since 2008
- Based in Utah; 65 territories as of 2021
- A bathroom remodeling franchise
Fees + Investment
- Royalty: 6% of gross sales
- Brand Fund: 2.5% of gross sales
- Franchise Fee: $50,000
- Initial investment: $109,530 – $206,100
- The below information is based on 19 franchisees that were open the full 2020 calendar year
The Wolf’s Take
It’s been a little while since I covered a service-based franchise in the newsletter
Generally speaking, service businesses have pro’s and con’s that differ from retail businesses. Retail businesses require you to sign leases, complete expensive build outs, and other headaches + risks associated with real estate.
Service businesses on the other hand typically require no brick & mortar and are lower investments, but scaling revenue is highly dependent with scaling your labor force.
Depending on the individual, one path may be more appealing than the other. If you’re interested in service businesses, Five Star Bath Solutions has an impressive track record thus far with it’s franchisees. At 65 territories sold, 19 of their franchisees that operated for all of 2020 were able to do an average of $836k of revenue.
That’s 4x the highest possible initial investment! Give this one a look if you’re leaning towards service businesses instead of retail.
- Five Star Bath Solutions Franchise Website
- Five Star Bath Solutions Appoints New Chief Growth Officer
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